The Securities and Exchange Commission today instituted public administrative proceedings against Platinum Equities, Inc., a registered broker-dealer in New York City, Blackheath & Kent Holdings, Inc., John J. Kenny, and Pasquale Forti. In the order the Commission's Division of Enforcement alleges that Platinum Equities, its two principals, Kenny and Forti, and its parent company, Blackheath & Kent Holdings, engaged in a scheme to recommend and promote the purchase of certain stock to customers of Platinum Equities without disclosing that the stock was owned by Kenny and Forti under the nominee name of Blackheath & Kent Holdings. The Division further alleges that the securities were held in an account at another brokerage firm.

A hearing will be held before an administrative law judge to determine if these allegations are true and, if so, what, if any, sanction is appropriate in the public interest and for the protection of investors.